Apple Revamps iOS, App Store, and Browsing for EU Compliance
Under the compulsion of the EU's Digital Markets Act, Apple has unveiled significant adjustments to iOS, the App Store, and the functionality of browsers on its platform. These modifications are poised to roll out in the EU with the arrival of iOS 17.4 in March.
Starting with browsing, the paradigm is shifting. Currently, users can opt for a default browser other than Safari, but any alternative browser must adhere to Safari's WebKit rendering engine. This is set to change, with every browser now having the liberty to employ the engine of its choice. Furthermore, EU iPhone users installing iOS 17.4 will encounter a browser choice screen the first time they venture into Safari.
The more groundbreaking revelation is Apple's decision to permit alternative app stores on iOS. Acknowledging potential risks, the company will subject all apps, irrespective of their distribution channel, to a "baseline review." This assessment involves a combination of automated checks and human scrutiny, resulting in succinct app descriptions and functionality disclosures presented before downloading.
To ensure accountability among developers of alternative app stores, Apple will authorize them as "marketplace developers" and introduce additional safeguards against malware in iOS apps. However, addressing risks like scams and objectionable content, as dictated by the new DMA-imposed provisions, poses a challenge for Apple.
In a move to expand capabilities, NFC functionality on iPhones within the EU will be extended, allowing alternative wallet and banking apps to utilize tap-to-pay features and be designated as the default method for mobile payments.
The App Store will feature new options for integrating payment service providers within a developer's app and for processing payments through a "link-out" method, where users complete transactions on the developer's external website.
Enhanced transparency will inform users when an app incorporates alternative payment processing. Notifications will also be triggered when users are no longer transacting with Apple and when developers direct them to alternative payment processors. This will involve a new app review process to ensure accurate communication from developers.
In the EU, iOS apps on the App Store will incur a commission of either 10% (for the majority of developers and subscriptions after the first year) or 17% on transactions involving digital goods and services. Additionally, there will be a 3% payment processing fee for apps opting for the App Store's payment processing. Apps distributed from the App Store or an alternative marketplace will pay a €0.50 "Core Technology Fee" for each first annual install per year over a 1 million threshold.
Apple asserts that 99% of developers will witness a reduction or maintenance of fees paid to Apple, with fewer than 1% subject to the Core Technology Fee. For apps on iPadOS, macOS, watchOS, and tvOS in the EU, developers opting for third-party payment processing or linking out to their website will enjoy a 3% discount on the commission owed to Apple.